Scarab Global Community Impact Fund

Scarab Global Community Impact Fund (SGCIF) makes direct loans of short to medium duration, and sometimes co-invests with established lenders and well regarded funds. It serves as an alternative to high yield bond funds. SGCIF focuses on community development and environmental restoration – investing in strong leadership with innovative solutions in any global region.

SGCIF’s investments have been chosen to provide a high yield with less risk than its traditional alternatives, and to outperform conventional alternatives. The Fund’s direct loans are secured with strong collateral and/or verified guarantees.

Financial description

Q3 2013 Financial Update:
SGCIF slightly underperformed its benchmark, Barclays Corporate Bond/High Yield Bond 50/50 mix, for the quarter but outperformed for the year, quarter to quarter with 5.58% versus the blended index benchmark return of 3.6%. Regular interest payments have been paid/accrued by the various loans. We believe it is significant for earlier investors holding Anthurium Solutions that they recently inked their first significant commercial contract, a three-year strategic alliance with the 14th largest pharmacy group.
The only additional investment in SGCIF occurred at the end of the third quarter with a loan to MicroVest's Local Credit Fund. This fund is similar to the MicroVest Short Duration Fund which is held in Scarab Enhanced-Cash Fund. This fund makes loans to Microfinance Institutions for individual entrepreneurs and to Small to Medium-sized Enterprises in developing countries. The difference is that the managers of this fund are global currency experts who decide in which locations there is an advantage to invest in the local currency with an expected boost to the yield over time.